EVOLUTION OF THE MARKETING CONCEPT
← the idea that a business must consider both its potential users and its competitors in every important business decision
← marketing concept requires three major steps:
1. identify an opportunity
2. ensure opportunity has not been met by competitors already, or meet opportunity differently than competition does
3. use appropriate marketing strategies to sell product/service
SUPPLY AND DEMAND
← when the supply of a product that consumers want or need is low, marketing is not as important a business activity as when the supply is high
← low supply means high demand so excessive marketing is redundant – the product usually sells itself
← some companies continue to market during times of low supply (i.e., sports teams) – Why?
← high supply means lower demand so marketing is needed to sell the excess goods
← some companies market less during times of high supply (i.e., seasonal goods) – Why?
HISTORY OF MARKETING
← from ancient times till the Industrial Revolution marketing played a less important role in business than it does today
← it was mainly concerned with distribution and sales vs. research, advertising, packaging, etc.
← before mass production, the demand for products was greater than supply
MARKETING & INDUSTRIALIZATION
← businesses changed during and after industrialization – steam & eventually electricity, gas and oil provided power
← factories now could produce huge quantities of inexpensive goods, & provide jobs & salaries to thousands of workers
← railroads moved goods all over the country, making it easy for people to buy goods
← marketing also changed during the late 1800s and 1900s
← the oversupply of labour and production meant that consumers could acquire inexpensive goods
← marketing was concerned with selling output
← This time saw growth of department store, mass media, supermarket...